Glossary of Terms Used by BUILDSAFE®
Adjudication means the dispute resolution process set out in the Construction Contracts Act 2002.
Adjudicator means an individual who is appointed in accordance with the Construction Contracts Act 2002 to determine a Dispute that has been referred to Adjudication.
Application means the application form which is set out on the Website to Register as a Member of the Scheme in relation to the Construction Contract specified therein and which includes the designated email address, preferred payment method and bank accounts for payment for each relevant Member.
BUILDSAFE® means Buildsafe Security of Payment Trustee Company Limited (company number 2229987) whose registered office is at 101 Wairau Road, Glenfield, North Shore City, Auckland.
BUILDSAFE Trust Account means the bank account in the name of BUILDSAFE where the Security Amount paid by a Principal is held in escrow until it is released by the Custodian in accordance with clauses 5.1(f) and (h).
Certificate of Practical Completion means the certificate in the form set out on the Website by which the Principal certifies acceptance and possession of the Contract Works save for Minor Outstanding Works, sets out any such Minor Outstanding Works and agrees to the release by BUILDSAFE® of 90% of the Security Amount.
Certificate of Completion means the certificate in the form set out on the Website by which the Principal certifies that the Contract Works are complete in all respects following the expiry of the Defects Liability Period and agrees to the release by BUILDSAFE® of the final 10% of the Security Amount.
Completion means the time following the expiry of the Defects Liability Period when the Contract Works and any Minor Outstanding Works and any defects identified by the Principal before the end of the Defects Liability Period have been completed and rectified by the Contractor. Cognate expressions shall be construed accordingly.
Construction Contract means a commercial or residential construction contract and includes any variation to the construction contract.
Contract Price means the total amount payable under the relevant Construction Contract for carrying out the Contract Works as may be adjusted, varied or updated by the Parties from time to time in accordance with the terms of the Construction Contract.
Contractor means the person who is authorised and employed by the Principal to undertake the relevant Contract Works.
Contract Works means the Construction Works, and any ancillary works and services, to be undertaken by the Contractor under a Construction Contract.
Defects Liability Period means the period of 20 Working Days after the date of Practical Completion when the Contractor is responsible for completing the Minor Outstanding Works and rectifying defects arising from defective workmanship or materials notified by the Owner/Principal during that period.
Fees means the upfront registration and administration fee and any fees and expenses incurred in relation to any Adjudication as such fees are set out on the Website at the time of Application by the Owner/Principal.
Member means any Owner/Principal, Contractor or Subcontractor who is Registered to participate in the Scheme.
Notice of Acceptance means, depending on the context, one or more of:
(a) the notice issued by BUILDSAFE® confirming the Registration of an Owner/Principal as a User of the Scheme and fixing the due date for payment by the Owner/Principal of the relevant Fees and the Security Amount into the BUILDSAFE® Trust Account in relation to the relevant Construction Contract;
(b) the notice issued by BUILDSAFE® confirming the Registration of a Contractor as a User of the Scheme and fixing the due date for payment by the Contractor of the relevant Fees in relation to the relevant Construction Contract; and
(c) the notice issued by BUILDSAFE® confirming the Registration of a Subcontractor as a User of the Scheme and fixing the due date for payment by the Subcontractor of the relevant Fees in relation to the relevant Construction Contract.
Notice of Completion means the notice in the form set out on the Website to be completed by the Contractor at such time as the Contractor considers the Contract Works, any Minor Outstanding Works and any defects notified in a Notice of Defects to be Complete.
Notice of Defects means the notice in the form set out on the Website to be completed and sent to the Contractor by the Owner/Principal prior to the expiry of the Defects Liability Period specifying the defects in workmanship and/or materials that have become apparent and that require rectification by the Contractor.
Notice of Dispute means the notice in the form set out on the Website to be completed by any Party giving Notice to any other Party of a Dispute which must be resolved by the Parties within 2 Working Days of receipt of the notice or the Party giving notice will refer the Dispute to Adjudication.
Notice of Incomplete Work means the notice in the form set out on the Website to be completed by the Owner/Principal following receipt of the Notice of Practical Completion or the Notice of Completion if the Owner/Principal does not accept that the Contract Works have reached Practical Completion or Completion.
Notice of Initiation means the notice issued by BUILDSAFE®
Notice of Practical Completion means the notice in the form set out on the Website to be completed by the Contractor at such time as it considers the Contract Works to be Practically Complete.
Notice of Request for Adjudication means the notice in the form set out on the Website to be completed by a Claimant requesting BUILDSAFE® to secure the appointment of an Adjudicator.
Practical Completion means the time when the Contract Works are complete save for Minor Outstanding Works.
Principal means the person who authorises and employs the Contractor to undertake the relevant Contract Works.
Progress Payment means a payment for Construction Work carried out under a Construction Contract that is in the nature of an installment of the Contract Price and includes any final payment under that Construction Contract.
Registered means a Principal, Contractor or Subcontractor who has applied to become a User and has been accepted by BUILDSAFE®.
Security Amount means the amount that is payable by the Principal into the BUILDSAFE® Trust Account to initiate the Scheme as set out on the Website as a percentage of the capital value of the Construction Works to be undertaken under the Scheme.
Subcontractor means any person who contracts with the Contractor to carry out any part of the relevant Contract Works on behalf of the Contractor.
confirming that the Owner/Principal has paid the Security Amount and that the Scheme in relation to the subject building project is effective and unconditional.
